Krypton Wolf Crypto Signals
# Memecoin Research Methodology
Part 1: How to understand if a memecoin is good?
Crypto has been around for over a decade. During this time, every bull run brings with it new narratives into the space. In 2017, it was ICOs. In 2021, it was DeFi, GameFi and NFTs. So, what could be next for 2024’s bull run? One potentially strong narrative would be memecoins.
### Why Memecoins?
Inherently, memecoins have little to no utility or value-add to the crypto space. They’re full of scams and they don’t really solve any problems. So why are they gaining so much popularity now?
Well, the short answer is:
- Memecoins are led by community. Rather than trusting utility coins with VCs that dump their investments on retail, investors now trust memecoin communities more.
- Costs of trading are little to none with low cost Layer 1 (L1) and Layer 2 (L2) chains like Solana and Arbitrum respectively.
- Celebrity endorsements and memes engage the audience better, in turn pushing the popularity of memecoins to greater heights.
So, now you understand why memecoins are the space to get into right now. But, how do we know which memecoins are good, and which are bad (or even outright scams)? To understand this, let us show you a few simple steps below to sieve out the gems.
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